Ethereum was unable to move above $2,000 against the US Dollar. ETH has been correcting downwards, although dips may be restricted below $1,900.
- Ethereum began a downward correction starting at the $2,000 resistance area.
- The price traded above $1,900 at the hour and is well within the simple moving average of 100 hours.
- A key bullish trendline is emerging with support at $1,905 (data feed via Kraken).
- A new rise could be possible if the pair stays above $1900, and the 100 hourly SMA.
Ethereum price reaches key support
Ethereum tried to break the $2,000 resistance level. The bulls failed to break above $2,000 and the price continued its downward slide. The price reached a high of $2,015 before it began a downward correction.
A move was seen below $1,950/$1,940 levels. The 23.6% Fib Retracement level for the upward movement from $1,704 low to $2,015 peak of Ether’s price fell below. It is trading at above $1900, the 100-hourly simple moving average, however.
On the hourly chart for ETH/USD, there is a bullish trendline that forms with support at $1,905. The $1,960 mark is the initial resistance.
Source: TradingView.com, ETHUSD
Near the $1,980 mark is the next major resistance. There’s also a connected bearish trend line in the chart. However, the main resistance lies in close proximity to $2,000. An upside breakout above the $2,000 barrier could trigger a new increase. The above scenario could lead to a rise in the price towards $2,100. Any further gains could push it toward the $2150 resistance zone.
What’s the down side to Ethereum?
It could continue its downward correction if it fails to rise above $1,980 resistance. The $1,920 area is the initial support for the downside.
Next major support will be near the $1900 level and the 100-hourly simple moving average. A test of the 50% Fib level to retrace the upward swing from the $1.704 swing low and the $2,015 high might help. If the price falls below the $1850 mark, it could push the price to $1800.
Technical Indicators
Hourly MACD – MACD for USD/ETH is losing momentum now in bullish territory.
Hourly RSI – The current RSI level for USD/ETH is just under 50.
Major Support Level – $1,900
Major Resistance Level – $2,000